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Tax Software Choices

Picking the best tax software for your needs.

TURBOTAX--

Pros: The ability to electronically import information from employers and financial institutions cuts the time it takes to prepare your taxes by as much as 50% and reduces errors. Cons: TurboTax can cost up to $90 depending on your needs.

H&R BLOCK--

Pros: At the beginning of the program, H&R Block provides a comprehensive list of all the forms you may need to file your return, which will help you get organized before you start plugging in numbers. Cons: Block allows users to import information from some W-2s and financial institutions, but its list isnât as comprehensive as the one provided by TurboTax.

TAXACT--

Pros: Anybody can prepare and e-file a federal tax return free with TaxAct. The Ultimate Bundle, including free federal and state returns, costs only $17.99. Customers can use the free version to get help via email or online chat; if they want to talk to a tax expert on the phone, they must pay a one-time fee of $7.99. Cons: TaxAct has limited import capabilities. Youâll likely have to type in information from some of your W-2s and all of your 1099s. The guidance isnât as comprehensive as with TurboTax or H&R Block and assumes an understanding of tax laws that some users may not possess.

TAXSLAYER--

Pros: You can prepare, e-file and print a federal tax return free. Active-duty members of the military can prepare and e-file federal and state tax returns free. Customers who take advantage of the free federal version will pay $23.90 to file a state return. Cons: TaxSlayer doesnât provide as much support as some of the other programs. If you want to talk to an expert, you must submit your question via email. In addition, TaxSlayer canât import most financial documents.

If your 2013 adjusted gross income was $58,000 or less, you can prepare and e-file a federal tax return free via the IRS Free File program. In most cases, youâll have to pay to prepare and e-file a state return. Taxpayers who make too much to qualify for Free File but have simple returns may be eligible for free programs offered by the major software providers.